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Nostra Terra O&G Co NTOG Chisholm Trail 3rd Well Spudded

  Nostra Terra O&G Co (NTOG) - Chisholm Trail 3rd Well Spudded

RNS Number : 5327P
Nostra Terra Oil & Gas Company PLC
25 October 2012






AIM: NTOG

                                                               25 October 2012

                                                                             

                     Nostra Terra Oil and Gas Company plc

                      ("Nostra Terra" or the "Company")

                                      

            Chisholm Trail - 3rd Well Spudded & Operations Update

                                      

Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is
pleased to announce that the first two  wells have been drilled and the  third 
horizontal well  has  spudded  in  the Chisholm  Trail  Prospect,  located  in 
Oklahoma.



Nostra Terra  owns a  20% interest  in the  overall Chisholm  Trail  Prospect, 
spearheaded by Ward Petroleum. There will be a well-by-well variance in NTOG's
working interests ("WI"s) because of differences in Ward's primary position in
each of the wells. Due to the high interest in this entire play, all available
options to participate  in the  third well  were exercised  during the  forced 
pooling and election process resulting in a reduction in Nostra Terra's WI  to 
12.58% from 20% on this particular well. Notwithstanding the change in the WI,
the Board is pleased by the acceleration  of drilling in the area, where  more 
wells than originally anticipated are being drilled.



The third well is expected to take approximately 30 days to drill, followed by
completion and initial production testing.



The first and second wells in  the Chisholm Trail Prospect have both  finished 
drilling. Completions are scheduled and expected shortly.



A fourth  well is  planned to  be drilled  by the  end of  2012, with  leasing 
activity ongoing and more drilling planned in 2013.



Chisholm Trail Drilling Activity (currently permitted
wells)
      Well       Working Interest      Current Status      Production (boepd)
Chisholm Trail 1                  Drilled, waiting to
(CT1)                       0.47% complete                        (TBD)
Chisholm Trail 2                  Drilled, waiting to
(CT2)                      0.16%* complete                        (TBD)
Chisholm Trail 3
(CT3)                     12.58%* Drilling                        (TBD)
Chisholm Trail 4
(CT4)                      5.31%* Pre-drilling preparation        (TBD)



*Some net  interests  have changed  during  the forced  pooling  and  election 
process.





Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:

"The first  two wells  in the  prospect  have been  drilled and  are  awaiting 
completion. The third has  spudded with surface casing  set and is  drilling, 
and the  fourth is  scheduled to  follow shortly.  The activity  level on  the 
prospect is  increasing  at  a  rapid  pace and  we're  delighted  to  have  a 
meaningful participation in the play, where we expect production and  revenues 
to have a positive impact on the Company."

Alden McCall, Chief Operating Officer  of Nostra Terra explains the  variances 
in Working Interest Percentages:

"After a  prospect  area is  identified,  the  right to  explore  and  produce 
hydrocarbons is obtained  by leasing  minerals in dozens  of different  tracts 
from all persons owning those mineral  rights. Some of those minerals will  be 
leased by Ward and some  will be leased by  competitor companies. In the  end, 
the percentage of minerals leased by Ward in any given tract, relative to  the 
total required to explore, is the Working Interest owned by Ward. For example,
if 60% of the minerals are leased  by Ward, then Ward's Working Interest  will 
be 60%. The  companies that  leased the remaining  40% can  'elect' (have  the 
option to participate in their pro-rata cost of the drill Working Interest) or
to farm their interest out to Ward. Nostra Terra, in turn, will participate in
20% of whatever  Ward's interest turns  out to be  after the election  period. 
Nostra Terra's Working Interest in this example would be 12% (20% of 60%)."

Nostra Terra will make further announcements as the operations progress.

                                                                             

For further information, visit www.ntog.co.uk or contact:



Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

mlofgran@ntog.co.uk       
Telephone: +1 480 993 8933



Shore Capital & Corporate Limited (Nominated Adviser)

Bidhi   Bhoma/   Toby    Gibbs 
Telephone: +44 (0)20 7408 4090



Alexander David Securities Ltd

David Scott  / Bill  Sharp 
Telephone: +44 (0)20 7448 9812



Lothbury Financial Services Limited

Gary   Middleton   /   Michael    Padley 
Telephone: +44 (0)20 7868 2010





Notes:



In September 2012, Nostra Terra entered into an agreement with Ward  Petroleum 
for the Chisholm Trail Prospect,  a multi-well horizontal drilling project  in 
Oklahoma. The  prospect  area  is large  in  size  and a  leasing  program  is 
on-going. Nearby  drilling has  resulted  in several  wells that  produce  in 
excess of 200boepd after the first 30 days of "flush" production. Nostra Terra
owns a 20% interest in this  active program within which working interests  in 
the individual  wells  vary. Based  on  results from  neighbouring  wells,  we 
anticipate this prospect also has the potential to deliver rapid payouts  with 
continued strong production levels.



Ward Petroleum Corporation,  based in Enid  Oklahoma, was founded  in 1963  by 
LewWard, its  Chairman.  Mr. Ward  is  a past-President  of  the  Independent 
Producers Association of America (IPAA) and  is a respected member of the  oil 
producers' community of the  United States. Among  its industry honours,  Ward 
Petroleum has been listed in the top 100 fastest growing American companies by
Inc. magazine, and has been named a "Blue Chip Enterprise" by Nations Business
magazine. Since its founding, Ward Petroleum has drilled more than 800  wells 
in the  Anadarko  and  Arkoma Basins,  some  as  deep as  22,000  feet.  Ward 
Petroleum operates nearly 350 wells in Oklahoma throughout both basins.



Oklahoma is the fifth  largest producing state in  the United States in  crude 
oil production. Despite its long history, it still produces about one  quarter 
of the peak rate that  was reached in 1927. The  state was the birthplace  for 
such commonly recognized corporate names as Halliburton, ConocoPhillips and J.
Paul Getty.





                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCMABMTMBTTBPT -0- Oct/25/2012 10:30 GMT
 
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